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Finance Receivables, Net (Tables) | 12 Months Ended
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Dec. 31, 2021
Receivables [Abstract] |
Schedule of Finance Receivables, Net | Finance receivables, net consist of the following (in thousands):
| As of December 31,
| 2021 |  | 2020
Finance receivables, gross | $ | 220,329 |  |  | $ | — |
Fair value premium on non-PCD finance receivables (1) | 40,251 |  |  | — |
Non-credit discount on PCD finance receivables (2) | (3,521) |  |  | — |
Merchant partner discounts and premiums, net | (104) |  |  | — |
Unearned origination fees | (360) |  |  | — |
Finance receivables, amortized cost | 256,595 |  |  | — |
Less allowance for loan losses | 75,574 |  |  | — |
Finance receivables, net | $ | 181,021 |  |  | $ | — |
(1)Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized as interest income on an effective yield basis over the lives of the related non-PCD finance receivables. See Note 3. (2)Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the life of the related PCD finance receivables. See Note 3
Schedule of Allowance for Credit Losses | Changes in the allowance for loan losses are as follows (in thousands):
| As of December 31,
| 2021 |  |  |  | 2020
Balance at beginning of year | $ | — |  |  |  |  | $ | 34 |
Provision for loan losses (1) | 48,952 |  |  |  |  | (488) |
Initial allowance recognized for PCD loans (2) | 32,036 |  |  |  |  | — |
Charge-offs | (5,545) |  |  |  |  | (114) |
Recoveries | 131 |  |  |  |  | 568 |
Balance at end of year | $ | 75,574 |  |  |  |  | $ | — |
(1)For the year ended December 31, 2021, includes $44.3 million as a result of the establishment of the initial allowance for expected lifetime credit losses for non-PCD finance receivables acquired in the AFF Acquisition, which is recorded as provision for loan losses in the consolidated statements of income. See Note 3. (2)Represents the establishment of the initial allowance for expected lifetime credit losses for PCD finance receivables acquired in the AFF Acquisition, which is added to the acquisition date fair value to establish the initial amortized cost basis of the PCD loans. As this initial allowance for loan losses is added to the acquisition date fair value, there is no provision for loan losses recognized in the consolidated statements of income. See Note 3.
Schedule of Finance Receivables Credit Quality Indicators | The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of December 31, 2021, by origination year:
| 2021 |  |  |  | 2020 |  | Total
FICO score category (1): |  |  |  |  |  |  |
No FICO score identified or obtained | $ | 57,536 |  |  |  |  | $ | 2,537 |  |  | $ | 60,073 |
599 or less | 69,703 |  |  |  |  | 11,701 |  |  | 81,404 |
Between 600 and 699 | 59,121 |  |  |  |  | 9,389 |  |  | 68,510 |
700 or greater | 8,637 |  |  |  |  | 1,241 |  |  | 9,878 |
Finance receivables before fair value adjustments | $ | 194,997 |  |  |  |  | $ | 24,868 |  |  | 219,865 |
Fair value premium on non-PCD finance receivables |  |  |  |  |  |  | 40,251 |
Non-credit discount on PCD finance receivables |  |  |  |  |  |  | (3,521) |
Finance receivables, amortized cost |  |  |  |  |  |  | $ | 256,595 |
(1)FICO score as determined at the time of loan origination.
Financing Receivable, Past Due | The following is an aging of the amortized cost of finance receivables as of December 31, 2021, by origination year:
| 2021 |  | 2020 |  | Total
Delinquency: |  |  |  |  |
1 to 30 days past due | $ | 16,077 |  |  | $ | 2,260 |  |  | $ | 18,337 |
31 to 60 days past due | 10,024 |  |  | 1,648 |  |  | 11,672 |
61 to 90 days past due (1) | 7,898 |  |  | 1,478 |  |  | 9,376 |
Total past due finance receivables before fair value adjustments | 33,999 |  |  | 5,386 |  |  | 39,385 |
Current finance receivables before fair value adjustments | 160,998 |  |  | 19,482 |  |  | 180,480 |
Finance receivables before fair value adjustments | $ | 194,997 |  |  | $ | 24,868 |  |  | 219,865 |
Fair value premium on non-PCD finance receivables |  |  |  |  | 40,251 |
Non-credit discount on PCD finance receivables |  |  |  |  | (3,521) |
Finance receivables, amortized cost |  |  |  |  | $ | 256,595 |
(1)The Company charges off finance receivables when a receivable is 90 days or more contractually past due.

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
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